Profits at Lanka IOC the second fuel distributor in Sri Lanka surged to 1.39 billion rupees in the June 2013 quarter from 191 million rupees a year earlier.
The firm reported earnings of 2.53 rupees per share in the quarter. Revenues dropped to 18.4 billion rupees in the June 2013 quarter from 18.6 billion rupees a year earlier and cost of sales dropped faster to 16 billion rupees from 17.4 billion, almost doubling gross profits to 2.4 billion rupees from 1.26 billion.
Managing director said revenues dropped because bunker sales were weak in the quarter, lubricant volumes were up and costs were kept down. “We optimized our purchases though procurements,” he said.
Oil prices have been moderate during the period, he said.
Finance costs fell to 251 million rupees in the quarter from 442 million rupees a year earlier.
The Lanka IOC said a stronger exchange rate in the June quarter helped bring down finance costs but in the September quarter a weaker exchange rate will push up costs.